Vivendi is in exclusive talks to sell its Editis publishing arm to a company of West Ham shareholder Daniel Kretinsky, the French media conglomerate said on Tuesday.
Vivendi, whose shares were down slightly in morning trade, said it was in talks with International Media Invest (IMI), a subsidiary of Czech Media Invest founded by Kretinsky, over the sale of Editis.
Vivendi also said its decision to embark on talks with Kretinsky meant it was dropping an earlier plan to spin-off Editis and float it on the Paris stock market.
Vivendi added the envisaged sale of Editis would need approval from the European Commission.
The sale of Editis could be worth as much as 900 million euros (£795 million) financial press have reported.
Kretinsky has built up one of Europe’s biggest energy companies over the last decade but he is now diversifying his investments.
In France, he has stakes in Le Monde newspaper, supermarket company Casino and TV group TF1 as well as property including a large Chateau.